You are a financial analyst employed at Clarington Quarry Works (CQW). CQW has a December 31 year-end. CQW's board of directors is considering a change to the company's executive compensation plan so that in the future it will be based on economic value added. Your manager, who reports to the vice-president of finance, has asked you to determine what the company's EVA was for its most recent fiscal year. You have gathered the following data.

Required:
Calculate EVA-for the most recent year for CQW.

Transcribed Image Text:

(S millions) 1,289 15% Common shares WACC Retained earnings Long-term debt R&D costs expensed in past years but expected to benefit the future Bad debt expense per income statement Additional bad debt write-offs after year-end due to bankruptcy of a customer on January 2 R&D costs expensed this year but expected to have benefits in the future Restructuring costs expensed two years ago but expected to have benefits for 10 years 500 56 starting at the beginning of last year Operating income 320